NEW VIRES MODEL; Some suggestion from a telegram user

Over the course of that year, Vires’ faults became very clear. It all started with the big loop and ended with the large USDN unexecuted debt. In spite of everything, Vires is a viable system, as long as the correct measures are implemented to protect the system and the USERS, because without users the system will not survive. Banks in Brazil are extremely profitable and they all charge annual interest that goes up to 3 digits. No Brazilian bank failed because of this. Vires’ problem was never the interest, but the low quality of the collateral.

Suggestions:

  1. Once markets have reset, restore maximum loan interest to 80%.

  2. Deduct from the amount paid as interest 10% for Vires Token holders and 10% for a security fund to be used in times of low liquidity.

  3. When a market reaches 90% usage, the distribution of amounts collected in loan interest would be temporarily changed, lowering the distribution to 5% to Vires Token holders and increasing the guarantee fund collection to 25% of the total paid of loan interest.

  4. USDN can be borrowed, but cannot serve as collateral to borrow another asset and its value must vary according to the market price, just like other stable currencies.

  5. Vires should only add the most liquid assets on Binance and Bitfinex, to ensure that collateral can be executed in times of need.

  6. The health of the account must be evaluated in real time considering tree factors together: price of the borrowed asset, price of the value given as collateral and the volume of the asset on the market (Binance and Bitfinex) to ensure that the collateral can be effectively executed. Settle the guarantee needs to be something natural and not a problem.

  7. The collateral must have a safe margin of “fat” before the forced execution begins, to prevent the situation where it is not possible to execute the sale of the assets to pay the debt.

I believe that these steps can guarantee a solidity to the system and a safety to the users.

Thanks to EDUARDO for the suggestion.

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Actually sounds really good

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